Krispy Kreme Shares Plunge 25% on Q1 Miss and Weak Q2 Outlook

Krispy Kreme (NASDAQ:DNUT) stock fell over 25% intra-day today after the company reported disappointing first-quarter results and issued guidance for the second quarter that fell well short of analyst expectations.

The company posted a net loss of $33.4 million for the quarter. Adjusted earnings per share came in at -$0.05, missing the consensus estimate of -$0.04. Revenue totaled $375.2 million, falling below the $385.11 million forecast and marking a 1% decline in organic sales from the prior year.

Looking ahead, the company projected second-quarter revenue between $370 million and $385 million, significantly below Wall Street’s $393.9 million estimate.

CEO Josh Charlesworth acknowledged macroeconomic headwinds and outlined steps to improve performance, including reducing debt, enhancing returns on capital, and prioritizing sustainable cash flow. Despite current pressures, the company reported a 21.4% year-over-year increase in its global points of access, which now total 17,982 locations.

Krispy Kreme also noted efforts to connect with cost-conscious consumers by promoting its core Original Glazed doughnut. However, these initiatives were not enough to offset investor concerns over weak sales momentum and a subdued near-term outlook.